Trump with money sign

3 Lessons for the Trump Trade


With the launch of two meme coins that added ~$30 billion to his net worth, Trump has not only established himself as the world's meme coin king, but also changed the attention economy. While AI was formerly the top narrative, it is now the Trump narrative.

With a few days perspective on the recent events, we can draw some lessons for the future of the Trump trade

Lesson 1: If You're Not In Early, Just Wait

Those who were in very early to the Trump meme coin launch profited greatly. Those who joined just a day later are now deeply in the red.

Taking a look at the funding rates for $Trump across exchanges, you can see that on launch the coin was too hot --it's that big orange streak--but now it's fine (see the green that I've highlighted?).

Just wait for these things to come back to earth.

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Lesson 2: There Is Always Another "Bright Idea"

And lest you fear that you'll never get another shot at such a meme coin, here's a look at the Trump family tree. Look at all those other possible meme coins: Don Jr. Ivanka, Eric, Barron ... probably not Tiffany, but who knows.

And then there are the grandchildren and spouses. The possibilities are endless.

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Lesson 3: The Long-Term Plays are in Infrastructure

All of these meme coins require infrastructure--not only to launch, but also to extract capital. Trump can't dump $Trump coin without crashing its price and reducing how much he's worth.

To extract that capital, he needs to use it as collateral in a DeFi project. Fortunately, Don Jr., Eric, and Barron have World Liberty Financial for just that.

And they'll even tell you which coins they most like right now. Just follow their tweets.

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Some Observations

That WFL tweet is somewhat deceptive as the Trump ecosystem exceeds those coins listed.

The $Trump and $Melania meme coins run on $SOL, so that's going to matter. WFL also owns quite a bit of $ondo for its Real World Asset (RWA) pathways.

Interesting to me is the presence of Tron ($TRX) and wBTC -- which is now also part of Justin Sun's empire. It appears that CoinBase is being pushed out (their competitor is cbBTC).

Concluding Thoughts

The crypto space is accustomed to "following the Fed." We're now also going to be "following Trump."

The previous rules were: inflation bad; interest rate cuts good.

The additional rule is: buy into whatever new thing Trump is doing with crypto.

Use these 3 lessons to guide you with the new rule.

Happy Trading!

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-Sebastian Purcell, PhD

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Disclaimers and Disclosures

This post is provided for educational and entertainment purposes only and should not be relied upon for business, investment, taxation, or legal advice. You should consult your own advisors for those matters. References to any securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by 1.2 Capital Management. (An offering to invest in a 1.2 Capital Management fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation--all of which should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by 1.2 Capital Management, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results.

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The views expressed here are those of the individual author and are not the views of 1.2 Capital Management, 1.2 Labs, or their affiliates. Certain information contained herein has been obtained from third-party sources. While taken from sources believed to be reliable, 1.2 Labs and affiliates have not independently verified such information and make no representations about the enduring accuracy of the information or its appropriateness for a given situation.ย 

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Finally, as the author of this report, you should recognize that I do actively invest. Many of my trades are quick and I do write about many investment items, whether stocks, digital assets, collectibles, and the like which I do not own. For the purposes of disclosing any conflicts of interest, assume that if it is covered, I own the investment item. Or if my coverage is negative that I am short the investment item.

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Sebastian Purcell, PhD
Sebastian Purcell, PhD

CEO for both 1.2 Capital and 1.2 Labs | I'm an academic turned crypto hedge fund manager and incubator director.


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